ATandT, TerreStar Developing Genus Satellite, Cellular Smartphone

AT&T and TerreStar are working on Genus, a smartphone with dual satellite and cellular connectivity. The smartphone may put AT&T in position to best take advantage of forthcoming LTE 4G technology.

TerreStar Networks, a company currently developing a satellite terrestrial
mobile broadband network, announced Sept. 30 that it has entered into an
agreement with AT&T "to bring to market the first fully integrated
satellite cellular smartphone."

Called the TerreStar Genus, the dual-mode smartphone, which resembles a
BlackBerry Curve, will run on the Windows Mobile operating system and feature a
touch screen, QWERTY keyboard and track ball navigation, and include Wi-Fi, GPS
and Bluetooth functionality. Intended as an everyday smartphone, it will give
users the option of voice and data services over either AT&T's cellular
network or the TerreStar satellite network.

"TerreStar is pleased to announce AT&T as a distribution
channel," Jeffrey Epstein, president of TerreStar Networks, said in a
statement. "TerreStar remains focused on offering an integrated satellite
and terrestrial communications solution to enable true ubiquity and reliability
virtually anywhere in the United States
to help solve critical communications and business continuity challenges faced
by government, emergency responders, enterprises and rural communities."

TerreStar said the Genus will be "smaller and more feature-rich than
previous satellite devices." On July 1, the company launched TerreStar-1,
which it calls the "world's largest, most powerful commercial
satellite," and on July 20 completed its first end-to-end call over it.

"We believe that the green-field satellite companies' plan is to forge
short-term roaming partnerships with AT&T and other cellular operators and
then, when LTE services are deployed, position themselves to be acquired by
these major players, including their prized spectrum," Kevin Burden, an
ABI analyst, said in a statement July 21.

The one kink in the plan is that the ATC order requires the satellite operators
to offer both satellite and cellular services. The inconvenience, however-what
Burden refers to as a "satellite tax"-is well worth the ability to
squat on the spectrum, which is meant for offering connectivity in regions
where cellular service is scarce.

TerreStar and AT&T will be demonstrating the Genus smartphone on Oct. 5 at
the International Association of Chiefs of Police conference in Denver.

Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.